South Korean asset management firms' Q3 profit surges 128 percent year-on-year

SEOUL, December 01 (AJP) - South Korea’s asset management industry expanded in the third quarter, with total assets under management (AUM) rising 3.9 percent from the previous quarter to 1,868.8 trillion won (about $1.27 trillion).

Fund deposits grew 5 percent to 1,226.8 trillion won ($835 billion), while investment advisory contracts increased 1.8 percent to 642 trillion won.

Funds recorded gains across major categories: equity funds reached 149.5 trillion won, bond funds 105.8 trillion won, and derivative funds 70 trillion won.

Industry profitability strengthened sharply. Net profit jumped 128.5 percent year-on-year to 944.7 billion won, while operating profit climbed 154.9 percent to 996.3 billion won. Return on equity improved 1.3 percentage points to 21.9 percent.

An official from the Financial Supervisory Service (FSS) said that improved government policies and stronger market performance helped lift stock indices and support profitability. However, the regulator noted the continued dominance of ETF-related public funds and widening performance gaps among firms. Nearly 80 percent of industry-wide net profit in the third quarter was concentrated among the top 30 companies.

The number of asset management firms increased by five to 505, with total employment reaching 13,626, up 119 from the previous quarter. Among 501 firms assessed, 299, or 59.7 percent, were profitable.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.